How to develop your purpose

statement and design principles

Corporate services productivity programme

June 2018

Methods of delivering corporate services in the NHS have changed little in the last 20 years compared to other sectors. This limited modernisation coupled with the variation in delivery methods, and therefore outcomes, contributed to NHS provider trusts spending £4 billion on corporate services in 2016/17.

Lord Carter’s review, Operational productivity and performance in English NHS acute hospitals: Unwarranted variations, published in 2016, investigated whether the NHS gets the best value (defined as the product of quality of care and the efficiency with which it is delivered) from its annual budget. It concluded that the NHS could save £5 billion a year if it addressed the significant and unwarranted costs and clinical practice variations.

The report recommended that trusts should rationalise their corporate functions to use resources in the most cost-effective manner; the Secretary of State for Health accepted all the report’s recommendations in March 2016.

From talking to function leadership groups (eg Future Focused Finance), trust directors and heads of corporate services functions, we found they agree that the way corporate services are delivered needs to change to benefit from modernisation.

They recognise that this means taking advantage of available economies of scope and scale. Most are asking for the direction and future operating model to be carefully guided on their behalf and for the system-wide obstacles to be removed centrally. This gives them the opportunity to deliver and receive quality services in line with national expectations and direction.

A collaborative delivery model has inherent challenges for trusts, which include forming the desired operating model and the governance to manage it. These changes need to happen at a time of constraints on capital and internal resources. We have designed this toolkit to help.

We compiled this guidance using subject matter expertise and feedback from trusts that have been through the process. We will update it regularly to reflect new information.

2 │ How to develop your purpose statement and design principles

Introduction (1/2)

This guide provides practical guidance on how to develop your purpose statement and design principles when redesigning a corporate function.

Useful resources

Please refer to:

• Lessons learned: setting up for success. Experiences of the ‘pathfinder’ corporate services projects.

• Good governance guide.

3 │ How to develop your purpose statement and design principles

Introduction (2/2)

Why create a purpose statement and

design principles?(1/2)

Early in any project to redesign corporate services, the project leads should define the purpose and

design principles for the new organisation.

Purpose and design principles provide:

• an emotive message for all employees to buy into and ‘get behind’

• a clear reference point to ensure the best design

• a tool to enable decision-making

• the basis for stakeholder engagement and communications

• guidance during implementation

• a clear ambition for the trust or group or trusts.

Trusts that have a clear purpose and are not intending to redesign their corporate services do not

need to go through this exercise.

4 │ How to develop your purpose statement and design principles

Why create a purpose statement and

design principles?(2/2)

• Defining a purpose gives the redesign of corporate services structure and it should be used to assess the

success of any design.

• The purpose should align with the trust’s overall purpose. Corporate services should always support the

trust’s key strategic themes and ambitions.

• Design principles are the building blocks for redesigning corporate services – guiding and providing a

point of reference when designing the detail. They link organisational strategy to rules that guide design

decisions.

• Design principles must influence design choice; they are strategic choices, not generic statements.

5 │ How to develop your purpose statement and design principles

Approach to creating a purpose and design principles

Develop design principles

Insight into the function

• Using available data (benchmarking,

qualitative performance, function dynamics

and the questions on the following pages),

agree what the current performance of the

function is.

• Identify areas for improvement and ambition

which the new design must focus on.

Create design principles

• A good set of principles focuses on the key

things that need to change or that will really

make a difference.

• Typically between six and 12 is considered

a good number.

Define implications

• The principles should influence design

decisions; if they don’t they are not design

principles.

• Define how each principle will impact the

design of the function.

Develop purpose

Agree values

• From the work you did developing the

design principles you should have a

good understanding of what the

function aims to do.

• In small groups discuss the values

that may underpin a purpose – these

could be grouped into themes such

as ‘delivering insight’, ‘enabling

transformation’, ‘investing in our

people’ and ‘operating sustainably’.

Create purpose

• The whole group should then agree

the defining statements that

together form a purpose for corporate

services. An example purpose

statement is included in the next

section.

Confirm

Review and refine

• In a follow-up workshop, the

group should further reflect on

the draft design principles and

purpose.

• The purpose, design principles

and associated implications

should be considered as a

whole to ensure they cover all

parts of the new design.

The process below can be completed over a number of workshops. Attendees should include functional heads and subject

matter experts. The workshops should be facilitated to ensure the group stays on track and generates the necessary outputs.

6 │ How to develop your purpose statement and design principles

Examples of design principles from trusts (2/2)• A path that is affordable, reusable and standardised.

– This makes it clear that consistency and standardisation are a priority. Does this mean that all sites,

locations and staff groups receive the same level of service?

• Consistent corporate service purpose across all sites.

– Clear principle – this may be challenging if underpinning infrastructure is the same.

• Provide joined-up support for users that reduces their administrative burden.

– Implies that corporate services will collaborate to simplify processes for users – eg leavers and joiners

processes.

• Acting as an informed supplier to users – educating them to ensure a value for money service with mutual

responsibilities for achieving this.

– Implies the ‘service catalogue’ will include customer responsibilities. There may be a ‘menu-based’

approach to pricing – where different user behaviour is charged differently.

• A scalable support model with potential to support the emerging needs of the local health economy (but not

providing services more widely).

– Clarity on the level of ambition for future expansion/service. Could impact technology options and location

strategy.

• Takes no longer than five years to achieve.

– This is more about the implementation path than the design – but there is no point designing something

that cannot be delivered (whether for financial, technical or other reasons).

8 │ How to develop your purpose statement and design principles

Good design principles – points to remember

Design principles:

• codify (ie describe and measure) what is important to the design (ie has an impact on the target

operating model)

• bind and constrain the design ‘space’, guiding the generation of options

• guide design work at lower levels of detail

• ensure a consistent philosophy, so that the overall operating model works.

Good design principles:

• are material/important – given the level

• represent a choice (eg not good customer service)

• have implications for the operating model design – direct towards a solution

• can be measured or assessed.

Design principles can come from strategy, business plans, values, constraints and stakeholder

desires.

9 │ How to develop your purpose statement and design principles

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© NHS Improvement 2018 Publication code: CG 71/18

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